The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Metropolitan Government Charters

Reference Number: MTAS-1131
Tennessee Code Annotated
Reviewed Date: October 19, 2015
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The section providing for a hotel-motel tax in metropolitan governments is titled Metropolitan Government-Tourist Accommodation Tax. “Tourism” means the planning and conducting of programs of information and publicity designed to attract tourists, visitors, and other interested people from outside the area, and also to encourage and coordinate the efforts of other public and private organizations or groups of citizens to publicize the facilities and attractions of the area for the same purposes. “Tourism” also means the acquisition, construction, and remodeling of facilities useful in attracting and promoting tourist, convention, and recreational businesses.

  • The tax is approved by ordinance of the metropolitan council.
  • A 3 percent hotel-motel tax is authorized.
  • An additional 1 percent is authorized for cities with a population of more than 100,000.
  • An additional 1 percent is authorized when the metropolitan government enters into a binding contract with a general contractor for the construction of a convention center.
  • An additional 1 percent is authorized for Nashville to help finance a new convention center.
  • A municipality with a population of 5,000 or more lying partly within a county with a metropolitan form of government and partly within an adjacent county may levy a privilege tax on the privilege of occupancy in any hotel of each transient in an amount set by the governing body of such municipality and not exceeding 3 percent. T.C.A. § 7-4-102 (c).